Venus Pipes & Tubes IPO

Venus Pipes & Tubes Limited is a rapidly expanding producer and supplier of stainless steel pipes and tubes in India. Venus Pipes & Tubes IPO will hit the stock market in 11 May 2021.

About Venus Pipes & Tubes

They have over 6 years of expertise in producing stainless steel tubular products in two major categories: seamless tubes/pipes and welded tubes/pipes.

Under these categories they presently manufacture five product lines: stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes.

They provide their products under the “Venus” brand name for applications in a variety of industries, including chemicals,  construction, fertilisers, pharmaceuticals, electricity, food processing, paper, and oil and gas. Their products are sold both in the domestic and international markets.

Manufacturing Facility

They have one production facility purposefully situated on the Bhuj-Bhachau highway in Dhaneti (Kutch, Gujarat), around 55 kilometres and 75 kilometres from the ports of Kandla and Mundra, respectively, which enables them reduce their transportation cost on raw material acquisition, shipments, and exports of their products.

Their production plant is divided into seamless and welded divisions, each with the most up-to-date product-specific hardware and machinery, such as tube mills, pilger mills, draw benches, swaging machines, pipe straightening machines, TIG/MIG welding systems, plasma welding systems, and so on.

Their Manufacturing Facility has a total installed capacity of 10,800 MT per year as of October 31, 2021. In addition, they have a storage facility where they keep raw material inventories.

Market Segment

They offer their products to clients and also traders/stockists in the local market, while they supply their goods to clients and authorised distributors on an exclusive basis in the global market, as well as some marketing agents.

They began exporting their items in 2017, and as of October 31, 2021, they had exported to 18 nations, including Brazil, the United Kingdom, Israel, and European Union countries, among others.

They have engaged sole distributors in foreign countries such as Italy and Kuwait, as well as marketing consultants for the European market, in order to enhance their share of the worldwide market.

Venus Pipes & Tubes IPO

Venus Pipes & Tubes Limited, headquartered in Kachchh has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 50,74,100 equity shares on 28 December 2021.

The offer Doesn’t includes any fresh issue and there is offer for sale (OFS) of 50,74,100 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	149.20	137.54	107.19	79.12
Total Revenue	82.34	312.03	179.32	120.51
Profit After Tax	9.10	30.95	6.49	4.95

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	18.04	18.04	3
Financial Year 2020	3.15	3.15	2
Financial Year 2019	2.86	2.86	1
Weighted Average	10.55	10.55
30 Jun. 2021	5.20	5.20

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the characteristics and key strengths of the company that go into determining the Issue Price:

1. Accreditations and product approvals on a global scale
2. Stainless-Steel Pipes and Tubes are their specialty.
3. Their products have a multi-fold demand.
4. Diversification of Customers.
5. A well-trained and seasoned workforce.

Venus Pipes & Tubes Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Jindal Saw Limited	9.43
2	2	Ratnamani Metal & Tubes Limited	32.06

Note

1. On December 20, 2021, the closing BSE price of these equity shares was retrieved from the BSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Venus Pipes IPO Details

IPO Opening Date	11 May 2021
IPO Closing Date	13 May 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	310 to 326 per equity share
Market Lot	46
Min Amount	14996
Listing At	BSE, NSE
Issue Size	50,74,100 Equity shares
Fresh Issue	N/A
Offer for Sale	50,74,100 equity shares

Venus Tubes IPO Date

Venus Pipes IPO opening date is 11 May 2021, and the closing date is 13 May 2021. The Venus Pipes & Tubes issue may list in 24 May 2021.

IPO Opening Date	11 May 2021
IPO Closing Date	13 May 2021
Basis of Allotment Date	19 May 2021
Initiation of Refunds	20 May 2021
Credit of Shares to Demat Account	23 May 2021
IPO Listing Date	24 May 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Venus Pipes & Tubes Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Venus Pipes & Tubes Limited IPO.

Venus Pipes & Tubes IPO GMP

Venus Pipes & Tubes IPO Grey Market Premium is 24. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
21 May 2022	24
20 May 2022	21
19 May 2022	24
18 May 2022	19
17 May 2022	13
16 May 2022	11
15 May 2022	07
14 May 2022	15
13 May 2022	14
12 May 2022	12
11 May 2022	10
10 May 2022	17
09 May 2022	20
08 May 2022	21
07 May 2022	22
06 May 2022	17	0	0
05 May 2022	24	0	0

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Venus Pipes IPO Review

Venus Pipes IPO review: If you are looking for review of  Venus Pipes & Tubes IPO is good or bad then you can apply for this IPO with a long term view.

Venus Tubes IPO Risk

• The impact of the COVID-19 epidemic on their business will be exceedingly unknown and impossible to anticipate.
• Their company has not gone into long-term arrangements with clients for the purchase of their products, nor has it committed into long-term agreements with suppliers for the delivery of raw materials.
• Several environmental laws compel them to seek consents, which are necessary for the operation of their Production Plant.
• Since of their inexperience in the highly competitive stainless steel pipes and tubes market, they confront several problems.
• They may not be able to sufficiently secure their intellectual property and may be held liable for infringement of others’ intellectual property rights.

Other Threats

• They have traditionally generated a major percentage of their revenue from their top 10 clients, and they may expect to do so in the future.
• They are subject to foreign currency exchange concerns and regulatory issues in foreign exchange management, both of which could have a negative influence on their operating results.
• There are pending lawsuits against them that, if found in their favour, could have a negative impact on their business.
• Jayantiram Motiram Choudhary and Megharam Sagramji Choudhary, its promoters and directors, have no official educational qualifications.
• Commitments in their financing arrangements limit their freedom in operating their business.
• Personal guarantees have been issued by their promoters and directors for financial facilities received by their firm.

Business Strategy

A considerable number of their senior executive professionals have worked with us for a long time, resulting in efficient operational collaboration and business strategy continuity.

They now produce welded pipes/tubes with sizes ranging from 6 mm to 219.3 mm, as well as seamless pipes/tubes with diameters ranging from 6 mm to 114.3 mm.

They plan to enhance their existing welded pipe/tube and seamless pipe/tube production ability to accommodate larger diameter welded pipes/tubes (up to 1219.2 mm) and seamless pipes/tubes (up to 168.3 mm).

They feel that the increased production capacity will put them in a better position to meet the needs of their current customers as well as new consumers they want to attract in the future.

Venus Pipes IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Venus Tubes IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
11 May 2021	1
12 May 2021	2
13 May 2021	3

Management

Their promoters and top leadership group have significant experience in this field, both in terms of product marketing and sales.

Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel, and Arun Axaykumar Kothari, the company’s promoters, are first-generation entrepreneurs with experience in stainless steel welded/seamless pipes and tubes, as well as marketing, sourcing, finance, accounting, and customer relationship management.

Their firm feels that their Promoters Arun Axaykumar Kothari, Megharam Sagramji Choudhary, and Dhruv Mahendrakumar Patel profit from their vision, management, abilities, experience, devotion, and connections.

Furthermore, their Promoter, Arun Axaykumar Kothari, is constantly engaged in the day-to-day operations of their firm, in addition to having knowledge in the field.

Quality Team

They are accredited by Bureau Veritas and have UK Accreditation Service accreditation for ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. Furthermore, TUV has certified their items for the European market under PED 2014/68/EU and ADW/AD 2000 – Merkblatt – W0, which is a necessity for delivery in European Union nations.

They are also an IBR-certified stainless steel seamless and welded pipe/tube producer and supplier. They have an internal quality team of 27 devoted employees who work under the direction of their board of directors.

Their quality control team verifies that all of their raw materials and finished goods are tested for compliance with international product standards on all grade characteristics.

Promoters

• Megharam Sagramji Choudhary
• Jayantiram Motiram Choudhary
• Dhruv Mahendrakumar Patel
• Arun Kothari

Promoter’s Holding

Pre Issue Share Holding	55.64%
Post Issue Share Holding

Venus Pipes & Tubes IPO Prospectus